Will I be impacted by the Affordable Care Act as a US expat?

Expats can qualify for exemption from the Affordable Care Act by proving their residency in another country. Generally, if you qualify for the Foreign Earned Income Exclusion, you satisfy the minimum essential requirements of the Affordable Care Act. To qualify for an exemption, you must pass one of the two residency tests:

  • The Physical Presence Test –  To qualify for this test, you must be physically inside a foreign country for 330 days in any 365-day period.
  • The Bona Fide Residence Test – To be considered a bona fide resident of another country, you must reside in a foreign country for at least one full year and have no immediate intention of returning to the United States permanently.